End of Circular 230 Disclaimers & Move Towards Reasonableness

[box title="Summary" color="#0d2457"] Everyone is happy that Circular 230 disclaimers have been nixed in conjunction with the end of the Covered Opinion rules. The new Circular 230 rules covering written advice install a number of reasonableness inquiries, which utilize a new “reasonable practitioner” standard. The new principle based standards are “more straightforward, simpler, and can be applied to all written tax advice in a less burdensome manner [than the covered opinion rules].” However, since views on what is “reasonable” can vary significantly, it seems to be only a matter of time before practitioners’ views of reasonableness are challenged by the Service. The “reasonable practitioner” standard’s application will remain unclear until additional examples are provided by the Service or until we have published outcomes of disputes [...]